Seven tankers switched course: Russian oil bound for China is redirected to India

A Russian oil tanker that had been headed for China has changed course and is now rushing to India, reflecting a shift in crude flows as New Delhi increases purchases from Moscow, Bloomberg reported on Wednesday.

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The tanker Aqua Titan, carrying Russia's Urals crude, is expected to reach New Mangalore on March 21 after loading cargo at a Baltic Sea port in late January.

Ship-tracking data showed that the Aframax vessel had originally signaled the Chinese port of Rizhao as its destination before turning around in the South China Sea in mid-March.

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The diversion came days after the United States allowed India to temporarily step up purchases of Russian crude. Indian refiners subsequently bought about 30 million barrels of Russian oil in the week following the waiver, according to the report.

The purchases were aimed at helping the country offset disruptions to Middle Eastern supplies following the war involving Iran. The Iran conflict has affected shipping through the Strait of Hormuz, a key route for global energy supplies.

At least seven tankers carrying Russian crude have switched their destinations mid-voyage from China to India, the report said, citing data from Vortexa Ltd. All of India's major refiners are currently in the market for Russian oil, it added.

China has been Moscow's primary buyer after India scaled back purchases, but the return of additional buyers is likely to push prices higher. Countries including Japan and South Korea have also been allowed to resume purchases of Russian crude, opening the possibility of further cargo diversions.

US waiver to buy Russian oil  

Days after the war began and shipping routes through the Strait of Hormuz were disrupted, Washington issued a temporary waiver allowing India to purchase Russian oil.

US Treasury Secretary Scott Bessent said the measure was intended to ease pressure on global energy supplies. "To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil," he said in the first week of March.

However, he said this short-term measure authorises only transactions involving oil already stranded at sea. "India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage."